When it comes to property investment and renovation in New Zealand, timing and strategy are crucial. In this blog post, we’ll explore key insights from experienced property investor Tama, focusing on early access strategies and renovation tips for maximizing your investment.
The Power of Early Access
One of the most valuable strategies Tama employs is negotiating early access to the property. As he explains, “Because it’s one of our deals we have negotiated early access, full early access to strip out the whole house and do whatever we need to do for a whole month before we even buy it.”
Early Access Strategies in New Zealand
- Early access clause NZ: This is a specific clause in the purchase agreement that allows the buyer to access the property before settlement.
- Early possession before settlement NZ: This arrangement lets you start work on the property before you officially own it.
- Buyer wants access to property before closing: Communicate your needs clearly with the seller and include it in the contract.
- Early possession of property: This can be crucial for starting renovations early and potentially saving time and money.
- Request early settlement: Sometimes, you might be able to negotiate an earlier settlement date.
- Early occupancy agreement: This formal agreement outlines the terms of early access and protects both buyer and seller.
Renovation Tips for Property Investors
Tama shares several valuable tips for renovating investment properties:
1. Efficient Use of Skip Bins
“Day one you want to fill it up as much as you can,” Tama advises. This prevents others from filling your skip with their rubbish, saving you money on disposal costs.
2. Maximize Existing Features
Look for ways to save money by utilizing existing features. For example, Tama notes, “I like this nice new external door and it’s always handy to have this because these are very expensive these can be like eight hundred to a thousand bucks.”
3. Smart Demolition
Be strategic about what you remove. Tama suggests, “Keep the original walls as much as you can to bring costs down but remember we are thinking about our buyers.”
4. Consider Structural Elements
When dealing with features like fireplaces, Tama advises caution: “If there is [a fireplace on the other side], 9 times out of 10, it’s structural, which means you can’t bash this out.”
5. Plan for Modern Amenities
Think about buyer preferences. For bathrooms, Tama recommends, “We might look at replacing this because it’s the old school style toilet” and “We might look at putting a nice LED mirror somewhere in because that’s always just nice and modern.”
6. Exterior Improvements
Don’t forget the outside. Tama suggests, “We might trim down that lemon tree doing a nice little check along the fence line to make sure anything there that needs to be fixed.”
The Importance of Professional Advice
While these tips are valuable, Tama emphasizes the importance of professional guidance. He mentions, “Maybe keep an eye on my next seminar date which might be somewhere else in the country,” highlighting the value of expert advice in property investment and renovation.
Early Access or No Early Access?
Early access and strategic renovation can significantly impact the profitability of your property investment in New Zealand. By negotiating early access, planning your renovations carefully, and focusing on buyer preferences, you can maximize your returns and create a desirable property for the market.
Remember, every property is unique, and market conditions can vary. Always consult with legal and real estate professionals before making significant decisions about property purchases and renovations. As Tama demonstrates, a well-planned approach combining early access and targeted renovations can lead to successful property investments in New Zealand.
